HYDERABAD: Outstanding investments attracted by the real estate sector in Andhra Pradesh (AP) have dropped from over Rs 1.44 lakh crore as of September 2012 to about Rs 1.39 lakh crore by September 2013, registering a marginal decline of about 3.2 per cent, according to The Associated Chambers of Commerce and Industry (Assocham).
During the same period, the outstanding investments attracted by the realty sector across top 20 states of India dipped by about 6 per cent from over Rs 15.39 lakh crore to about Rs 14.51 lakh crore, the apex industry body stated in a press release on Tuesday.
Assocham stated that a study conducted by it had revealed that "the real estate sector suffered grave turbulence in 2013 due to a plethora of reasons like rampant economic slowdown both globally and domestically, liquidity crunch, unstable currency, high input costs, labour shortage, high interest rates and growing inflation."
Apart from AP, the states of Jharkhand, Haryana and Madhya Pradesh are the top five states that have seen a significant decline in investment inflows during the year-long period. At the same time, Bihar, Jammu & Kashmir, Assam, Odisha and Uttar Pradesh recorded a surge in investments attracted by the realty sector.
In AP, about 72 per cent of the total outstanding investments in the sector was under implementation as of September 2013 while nationally over 68 per cent of total investments was under implementation, the release stated.
However, the share of AP in the outstanding investments attracted by the real estate sector across the top 20 states improved slightly from 9.3 per cent as of September 2012 to about 9.6 per cent as of September 2013.
Maharashtra accounted for the highest share of about 20 per cent in the outstanding real estate investments followed by Gujarat (13 per cent), Haryana (11.2 per cent), Karnataka (11.1 per cent), Uttar Pradesh (9.8 per cent) and AP (9.6 per cent), as of September 2013.
To perk up the real estate sector, Assocham has given various suggestions to the government. These included setting up a single window clearance system to clear all projects.